I. Executive Summary: This item seeks adoption of a proposed amendment to establish penalties and interest charges for late reports and royalty payments.

II. Discussion: Under Parks and Wildlife Code, Chapter 86, the Texas Parks and Wildlife Commission is required to manage, control, and protect marl and sand of commercial value and all gravel shell, and mudshell located within the tidewater limits of the state and within the freshwater areas of the state not embraced by a survey of private land. Chapter 86 also prohibits the disturbance or take of marl, sand, gravel, shell, or mudshell under the management and protection of the Commission without a permit, with limited exceptions. The statute additionally allows the granting of a permit upon a finding that a proposed activity will not significantly increase nonpoint source pollution; significantly accelerate erosion; damage or injuriously affect hydrology of a river; any island, reef, bar, channel, river, creek, or bayou used for navigation or any oysters, oyster beds, fish, or wildlife in or near the activity.

The current rules governing sand and gravel removal have not been significantly altered since 1997. A recent internal audit of the sand and gravel program found that the current rules did not create a sufficient incentive for timely royalty payments and timely submission of reports.

At the November 2012 meeting of the Work Session, the Commission authorized staff to publish the proposed amendment in the Texas Register for public comment. The proposed rules appeared in the December 21, 2012, issue of the Texas Register (37 TexReg 9864-9866). A summary of public comment on the proposed rules will be presented at the time of the hearing.

“The Texas Parks and Wildlife Commission adopts amendments to §69.121, concerning Prices, with changes as necessary to the proposed text as published in the December 21, 2012, issue of the Texas Register (37 TexReg 9864-9866).”